The impact of traffic violations on car insurance premiums in India: In India, the streets and highways are a constant reminder of the country’s ever-growing vehicular population. While navigating these roads, one is likely to encounter numerous traffic violations daily, ranging from minor infractions to more serious offences.
Understanding car insurance premiums
Before delving into the impact of traffic violations, let’s clarify what car insurance policy premiums are. A car insurance premium is the amount you pay to kotak car insurance for coverage. The premium amount is influenced by various factors, and one of the most crucial determinants is your driving history, which includes traffic violations.
Types of traffic violations
Traffic violations in India can broadly be categorized into two types: minor and major offences.
- Minor offences: While these offences can result in fines and penalties, they are considered minor compared to major violations. These include relatively less severe infractions like speeding, running a red light, not wearing a seatbelt or using a mobile phone while driving.
- Major offences: Major offences encompass more serious violations, such as driving under the influence of alcohol or drugs, reckless driving, hit and run or driving without a valid license. These offences are not only more dangerous but also carry stricter penalties.
Impact of traffic violations on car insurance premiums
Now, let’s explore how different types of traffic violations can affect your car insurance premiums in India:
- Traffic violations are considered indicators of risky behavior on the road. The more violations you have, the higher the premium hike is likely to be. If you are found guilty of minor offences, your car insurance premium may increase during policy renewal.
- One of the key benefits of car insurance in India is the no-claim bonus (NCB), which rewards policyholders for claim-free years. However, if you are involved in an accident due to a traffic violation, you might affect your car insurance, resulting in a direct financial loss.
- Higher deductibles (the amount you must pay out of pocket before your insurance kicks in) might be imposed if you have a record of traffic violations. This means you’ll need to bear a greater share of the repair costs in case of an accident.
- If you accumulate too many traffic violations or have a history of major offences, this can limit your coverage options and potentially lead to higher premiums.
Ways to mitigate the impact
While traffic violations can indeed lead to increased car insurance premiums, there are ways to mitigate their impact:
- Avoid speeding, use seatbelts and refrain from using your phone while driving.
- Discounts are offered to policyholders who complete defensive driving courses.
- Periodically review your car insurance policy to ensure it still meets your needs and budget.
- Maintain a clean driving record by avoiding major violations like drunk driving or reckless driving.
In India, traffic violations have a tangible impact on car insurance premiums. To ensure that you get the most favourable car insurance rates, it’s essential to prioritize safe and responsible driving. So, protect yourself and others on the road but also maintain affordable and stable car insurance premiums with kotak car insurance in the long run.